I have always had a soft spot for single moms (probably because I was raised by one).
So I was thrilled when this mom of 2 wanted to come work with me!
Let’s talk about how she, a single mom making $75,000 a year, is building her $2M retirement fund while raising two kids
The Numbers Behind Her Plan:
- Current age: 35
- Kids: Two (ages 8 and 11)
- Salary: $75,000/year
- Target retirement age: 60
- Current retirement savings: $85,000
We Created Some Basic Money Rules
- Pay yourself first
- Automate everything
- Live on last year’s salary
- Put bonuses and tax refunds into investments
- Skip the fancy investment strategies
Her Investment Strategy
- 401(k) Strategy: $22,500/year
- Maxes out her contribution limit
- Company matches 6% ($4,500/year)
- Total annual 401(k) investment: $27,000
2. Roth IRA: $6,000/year
- Maxes out contribution limit
- Uses automatic monthly transfers
- Invests in low-cost index funds
Where the Money is Coming From
Side Income ($1000/month savings)
- Started online tutoring kids for Math
- Spends about 8 hours a week on this
Investing her Annual Bonus Money ($2000 annually)
- Gets a bonus in February every year
- Going to invest 100% of that
Food ($500/month savings)
- Meal plans weekly
- Buys in bulk
- Uses cashback apps
Her Path to $2M Isn’t Fast or Exciting
Her path to $2M is simple – she invests every month, no matter what the market does.
Her strategy prioritizes basic index funds over trendy investments, and her monthly contributions grow with each raise she gets.
She automates every part of her finances so she never misses an investment, even when life gets busy.
She understands that building wealth is like watching grass grow – you don’t see daily progress, but over time it adds up.
Two decades from now, compound interest will have turned her steady $33,000 yearly investments into $2M.
Her kids learn from watching her make simple, consistent choices with money.
The most powerful part? Time does most of the heavy lifting while she focuses on her life and family.
